Mobileye's $900 Million Mentee Robotics Deal: The Self-Driving Giant's Leap Into Humanoid AI

Mobileye Global sent shockwaves through the technology world Tuesday when it announced plans to acquire Mentee Robotics for approximately $900 million, marking the autonomous driving giant's dramatic pivot into the burgeoning humanoid robotics space. The deal, unveiled during CES 2026 in Las Vegas, underscores the growing convergence between self-driving technology and broader physical AI applications.

Under the terms of the agreement, Mobileye will pay roughly $612 million in cash plus up to 26.2 million shares of common stock for the Israeli robotics startup. The transaction values Mentee at a substantial premium, reflecting both the strategic importance of humanoid AI and the competitive intensity of the market.

From Cars to Humanoids: A Natural Evolution

The acquisition represents a bold bet that the same technologies powering autonomous vehicles—computer vision, sensor fusion, and AI-based decision making—can be applied to humanoid robots operating in warehouses, factories, and eventually homes. Mobileye's expertise in helping machines perceive and navigate complex environments positions it well for this transition.

"The acquisition of Mentee Robotics will accelerate Mobileye's vision for Physical AI leadership. We believe the sensing, perception, and decision-making technologies we've developed for autonomous driving are directly applicable to humanoid robotics."

— Mobileye official statement on the acquisition

Mentee Robotics, founded in 2022 by a team that includes Mobileye co-founder Professor Amnon Shashua, has developed what it describes as a "third-generation, vertically integrated humanoid robot." The company's approach emphasizes AI-first design, with sophisticated machine learning models enabling natural movement and task execution without human teleoperation.

The Founders' Reunion

The deal creates an unusual situation: Shashua, who serves as Mobileye's chairman, co-founder, and CEO, is also a significant shareholder of Mentee Robotics. To address potential conflicts of interest, Shashua recused himself from Mobileye's board deliberations regarding the acquisition.

The other Mentee co-founders bring formidable credentials to the combined entity:

• Professor Lior Wolf: Former Facebook AI Research Director and Mentee's CEO
• Professor Shai Shalev-Shwartz: Renowned machine learning researcher with extensive contributions to AI theory

Intel, which owns a controlling stake in Mobileye following its 2017 acquisition and subsequent 2022 IPO, approved the transaction. The deal is expected to close in the first quarter of 2026, subject to regulatory approvals.

Accelerating the Humanoid Timeline

Mentee Robotics has been operating in relative stealth compared to higher-profile competitors like Tesla's Optimus program, Boston Dynamics, and Figure AI. However, the company claims its robots can perform complex manipulation tasks and navigate dynamic environments more reliably than current alternatives.

The acquisition timeline is aggressive. Mobileye said it expects first on-site proof-of-concept deployments with customers in 2026, with these deployments operating autonomously without human teleoperation. Series production and commercialization are targeted for 2028.

Key milestones outlined in the announcement:

• 2026: Customer proof-of-concept deployments begin
• 2027: Expanded pilot programs across industrial verticals
• 2028: Commercial production and sales launch

Why Now? The Physical AI Moment

The timing of Mobileye's move reflects a broader industry conviction that humanoid robotics has reached an inflection point. Advances in large language models, improved actuator technology, and falling sensor costs have combined to make viable humanoid robots seem achievable rather than science fiction.

CES 2026 has been dominated by robotics announcements. Nvidia CEO Jensen Huang declared the beginning of the "physical AI era" in his keynote address, while Samsung, Hyundai, and numerous startups showcased humanoid prototypes. The flurry of activity has drawn comparisons to the early smartphone era, when industry observers recognized a technological shift before mass adoption occurred.

For Mobileye, the strategic rationale extends beyond diversification. The company's core autonomous vehicle business faces challenges as automakers delay robotaxi deployments and L4 autonomy timelines stretch further into the future. Humanoid robotics offers a potentially faster path to commercial AI applications.

Stock Reaction and Analyst Views

Mobileye shares surged as much as 11% in premarket trading Wednesday before settling at gains of approximately 8% in regular session trading. The stock had been under pressure throughout 2025 as autonomous vehicle timelines slipped and competition intensified.

Wall Street analysts offered mixed reactions to the deal:

"The acquisition makes strategic sense given the technology overlap, but execution risk is substantial. Humanoid robotics is earlier stage than autonomous driving, and Mobileye will be competing against well-funded rivals."

— Technology sector analyst at a major investment bank

Others were more enthusiastic, noting that the $900 million price tag is modest relative to valuations commanded by pure-play humanoid robotics companies in private markets. Figure AI, for example, was valued at $2.6 billion in its most recent funding round despite having no commercial products.

Competitive Landscape Intensifies

Mobileye's entry adds another formidable competitor to the humanoid robotics race. The field now includes:

• Tesla: Optimus program targeting 2027 production
• Boston Dynamics: Atlas humanoid with industry partnerships
• Figure AI: Well-funded startup with BMW manufacturing deal
• Hyundai: $26 billion U.S. robotics investment announced at CES
• Agility Robotics: Digit robot deployed in Amazon warehouses

The competition for talent, manufacturing capacity, and customer relationships is intensifying. Companies that can demonstrate reliable real-world performance—not just impressive demos—will likely emerge as winners.

Investment Implications

For investors, the Mobileye-Mentee deal offers several takeaways. First, the convergence between autonomous vehicles and robotics creates opportunities for companies with transferable technology platforms. Second, humanoid robotics valuations remain elevated, suggesting continued investor appetite for the theme. Third, execution will ultimately determine winners, and the path from prototype to profitable commercial product remains long and uncertain.

Mobileye's expanded ambition adds both opportunity and risk to its investment thesis. Success in humanoid robotics could transform the company into a diversified physical AI leader. Failure would represent a costly distraction from its core automotive business at a time when that market demands full attention.

The next 18-24 months will reveal whether Mobileye's bet on humanoid AI was visionary or premature. For now, the market is giving the company credit for boldness.